Rey Company$$s only product sells for $$233$ per unit. Data for its first year of operations follow.

Exercise $19-9($Algo$)$ Absorption costing and variable costing income statements LO P$2$

Prepare an income statement for the year using variables materials $ $37$ per unit

Direct labor $ $45$ per unit

Variable overhead $ $7$ per unit

Fixed overhead $ $225,000$ per year

Variable selling and administrative expenses $ $35$ per unit

Fixed selling and administrative expenses $ $234,000$ per year

Units produced and sold $25,000$ units

$1.$ Prepare an income statement for the year using absorption costing

$2.$ Prepare an income statement for the year using variable costing.